New Investor: Live in Arizona investing in Birmingham AL
Member since 2026 · 10 posts · 7 votes
New Investor: Live in Arizona investing in Birmingham AL
Most Popular Reply
Samuel CoronadoPro Member
Investor · Huntsville, AL · Member since 2016 · 335 posts · 181 votesThe best place to invest is your own backyard. Birmingham is the least friendly rental city in all of Alabama. It has the wrong politicians if you know what I mean.
27 Replies
- Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes3mo
Hello Fernando, It's great to have you here!
Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts
Best of luck!
- Member since 2026 · 10 posts · 7 votes3mo
@Dmitriy Fomichenko thanks for the tip
- Rental Property Investor · Grapevine, TX · Member since 2020 · 136 posts · 52 votes3mo
Quote from @Fernando Moreno:
HI everyone, I am a new investor and new to the community and just like many of you I have decided to take the leap into Financial Freedom. I currently live in Tucson, Arizona and have been looking to invest out of state. I look forward to connect with you all and be of help the best I can.
On another note, has anyone been actively doing BRRRR's in Birminham? I would love your input and guidance into it. I have been listening to the podcasts about it and reading BRRRR by Divid Greene. I have been actively trying to learn about this method specially because I could start with little to no money out of pocket
Fernando Moreno
520-409-2923
Welcome! Curious what draws you to Birmingham. Is it the low taxes and low entry price point? I'm buying in Birmingham for rentals. Zip codes 35235, 35040, 35023, 35210 have been ideal for an investment property. Do you have a location you're looking to buy in?
- Member since 2026 · 10 posts · 7 votes3mo
@Michael Ewers so I have been looking towards Eastlake, 35206 and some parts of 35208 for the entry, but I also have a realtor who has been informing me that 35215 and 35235 are the better Zipcodes for BRRRR in Birmingham due to the Rent to Price ratio and hous prices! I am focused strongly on finding cash flow properties and I know Birmingham has that
- Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes3moHow would you rehab a property in Birmingham when you live in Tucson? A rehab actually requires your input on a daily basis. Contractors don't show, they need to have questions answered, they forgot to buy "T" connectors and have to drive across town to find them. Not very productive work. Plan on living in Birmingham while you buy, rehab and find a renter.
Quote from @Fernando Moreno:
@Michael Ewers so I have been looking towards Eastlake, 35206 and some parts of 35208 for the entry, but I also have a realtor who has been informing me that 35215 and 35235 are the better Zipcodes for BRRRR in Birmingham due to the Rent to Price ratio and hous prices! I am focused strongly on finding cash flow properties and I know Birmingham has that
First thing you should do is read the threads of the problems people have trying to invest out of state. There are a lot of them. You'd be surprised how complex those problems can get. So, be careful.
I invest mostly in Maricopa county and I find that there are plenty of good opportunities when you look, that don't have the same concerns as investing out of state. Tucson or even Yuma are good too.
Tucson to Phoenix 112 miles
Tucson to Birmingham 1,584 miles
Distance isn't the only concern, a whole different culture, set of laws, and suppliers to learn. One hurricane will ruin your whole day. Don't get me wrong, I like Huntsville, and Alabama coast but I think the distance to anything there goes from a single family play to an apartment play where you can have a property manager and you're more hands off. If you can find a 20 unit or bigger in Birmingham, that changes the equation.
Your goal "specially because I could start with little to no money out of pocket"
Investing so far from home is not consistent with your stated goal - 3moBryan HartlenPro MemberInvestor · Phoenix, AZ · Member since 2018 · 313 posts · 157 votes
Quote from @Fernando Moreno:
@Michael Ewers so I have been looking towards Eastlake, 35206 and some parts of 35208 for the entry, but I also have a realtor who has been informing me that 35215 and 35235 are the better Zipcodes for BRRRR in Birmingham due to the Rent to Price ratio and hous prices! I am focused strongly on finding cash flow properties and I know Birmingham has that
Hi @Fernando Moreno. I live in Phoenix and invest in Birmingham (rentals and flips). It can be done, but out of state investing does come with its own set of challenges, many of which have been mentioned by other members. Our biggest challenge is retaining good contractors. We use a general contractor which costs us more on rehab but shifts some of the daily oversight to the GC. In our first couple years in the area, it was not uncommon to start with one GC and have to find another to finish the job.
So, if you’re jumping in as a first time out of state rehabber, I would be very very conservative in your underwriting. It’s going to take you longer than expected and it will cost you more than expected.
As for locations, make sure your realtor is very knowledgeable about the areas. Eastlake zip codes including the ones you mentioned are generally a class D / Section 8 area. Market appreciation will not be great so you’ll need to force through rehab. Values can also vary significantly from street to street in that area. Some of the fringes are starting to see revitalization where others remain typical section 8.
- Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes3mo@Bryan Hartlen: Since you are from Phoenix and it's a target rich environment for finding properties "off market" for investments, what is it about the area that keeps you from investing here? Just curious.
Quote from @Bryan Hartlen:
Quote from @Fernando Moreno:
@Michael Ewers so I have been looking towards Eastlake, 35206 and some parts of 35208 for the entry, but I also have a realtor who has been informing me that 35215 and 35235 are the better Zipcodes for BRRRR in Birmingham due to the Rent to Price ratio and hous prices! I am focused strongly on finding cash flow properties and I know Birmingham has that
Hi @Fernando Moreno. I live in Phoenix and invest in Birmingham (rentals and flips). It can be done, but out of state investing does come with its own set of challenges, many of which have been mentioned by other members. Our biggest challenge is retaining good contractors. We use a general contractor which costs us more on rehab but shifts some of the daily oversight to the GC. In our first couple years in the area, it was not uncommon to start with one GC and have to find another to finish the job.
So, if you’re jumping in as a first time out of state rehabber, I would be very very conservative in your underwriting. It’s going to take you longer than expected and it will cost you more than expected.
As for locations, make sure your realtor is very knowledgeable about the areas. Eastlake zip codes including the ones you mentioned are generally a class D / Section 8 area. Market appreciation will not be great so you’ll need to force through rehab. Values can also vary significantly from street to street in that area. Some of the fringes are starting to see revitalization where others remain typical section 8.
I can find "regular" properties which cost under $25,000 to take over, with a 3% to 5% interest rate, fix up and sell or to turn into rentals. But it involves using creative financing. It seems you probably spend that much getting bank financing with the rate being a little higher. Maybe I'm assuming something that isn't correct.
Is it lack of access to these properties, lack of qualified contractors? Do you have a specific source that feeds houses to you, or is there some set of tax incentives you prefer?
We're told Phoenix is the 5th largest city, so there is a lot of inventory available.
Is there anything in particular you'd change to consider investing in Phoenix? - 3moBryan HartlenPro MemberInvestor · Phoenix, AZ · Member since 2018 · 313 posts · 157 votes
Quote from @Ken M.:
@Bryan Hartlen: Since you are from Phoenix and it's a target rich environment for finding properties "off market" for investments, what is it about the area that keeps you from investing here? Just curious.Quote from @Bryan Hartlen:
Quote from @Fernando Moreno:
@Michael Ewers so I have been looking towards Eastlake, 35206 and some parts of 35208 for the entry, but I also have a realtor who has been informing me that 35215 and 35235 are the better Zipcodes for BRRRR in Birmingham due to the Rent to Price ratio and hous prices! I am focused strongly on finding cash flow properties and I know Birmingham has that
Hi @Fernando Moreno. I live in Phoenix and invest in Birmingham (rentals and flips). It can be done, but out of state investing does come with its own set of challenges, many of which have been mentioned by other members. Our biggest challenge is retaining good contractors. We use a general contractor which costs us more on rehab but shifts some of the daily oversight to the GC. In our first couple years in the area, it was not uncommon to start with one GC and have to find another to finish the job.
So, if you’re jumping in as a first time out of state rehabber, I would be very very conservative in your underwriting. It’s going to take you longer than expected and it will cost you more than expected.
As for locations, make sure your realtor is very knowledgeable about the areas. Eastlake zip codes including the ones you mentioned are generally a class D / Section 8 area. Market appreciation will not be great so you’ll need to force through rehab. Values can also vary significantly from street to street in that area. Some of the fringes are starting to see revitalization where others remain typical section 8.
I can find "regular" properties which cost under $25,000 to take over, with a 3% to 5% interest rate, fix up and sell or to turn into rentals. But it involves using creative financing. It seems you probably spend that much getting bank financing with the rate being a little higher. Maybe I'm assuming something that isn't correct.
Is it lack of access to these properties, lack of qualified contractors? Do you have a specific source that feeds houses to you, or is there some set of tax incentives you prefer?
We're told Phoenix is the 5th largest city, so there is a lot of inventory available.
Is there anything in particular you'd change to consider investing in Phoenix?@Ken M. the short answer is I'm lazy ;-). Longer answer is we're open to any market, but we had to do some work in Bham as we had a few non-performing notes that we couldn't mod which eventually left us with foreclosed properties that needed to be rehabbed. Through those we developed a team (granted our GC member changed a few times) and Bham evolved into our primary market. I've invested a few times in Phx but never spent the time to develop a pipeline.
- Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes3moThat actually explains a lot, thank you
Quote from @Bryan Hartlen:
Quote from @Ken M.:
@Bryan Hartlen: Since you are from Phoenix and it's a target rich environment for finding properties "off market" for investments, what is it about the area that keeps you from investing here? Just curious.Quote from @Bryan Hartlen:
Quote from @Fernando Moreno:
@Michael Ewers so I have been looking towards Eastlake, 35206 and some parts of 35208 for the entry, but I also have a realtor who has been informing me that 35215 and 35235 are the better Zipcodes for BRRRR in Birmingham due to the Rent to Price ratio and hous prices! I am focused strongly on finding cash flow properties and I know Birmingham has that
Hi @Fernando Moreno. I live in Phoenix and invest in Birmingham (rentals and flips). It can be done, but out of state investing does come with its own set of challenges, many of which have been mentioned by other members. Our biggest challenge is retaining good contractors. We use a general contractor which costs us more on rehab but shifts some of the daily oversight to the GC. In our first couple years in the area, it was not uncommon to start with one GC and have to find another to finish the job.
So, if you’re jumping in as a first time out of state rehabber, I would be very very conservative in your underwriting. It’s going to take you longer than expected and it will cost you more than expected.
As for locations, make sure your realtor is very knowledgeable about the areas. Eastlake zip codes including the ones you mentioned are generally a class D / Section 8 area. Market appreciation will not be great so you’ll need to force through rehab. Values can also vary significantly from street to street in that area. Some of the fringes are starting to see revitalization where others remain typical section 8.
I can find "regular" properties which cost under $25,000 to take over, with a 3% to 5% interest rate, fix up and sell or to turn into rentals. But it involves using creative financing. It seems you probably spend that much getting bank financing with the rate being a little higher. Maybe I'm assuming something that isn't correct.
Is it lack of access to these properties, lack of qualified contractors? Do you have a specific source that feeds houses to you, or is there some set of tax incentives you prefer?
We're told Phoenix is the 5th largest city, so there is a lot of inventory available.
Is there anything in particular you'd change to consider investing in Phoenix?@Ken M. the short answer is I'm lazy ;-). Longer answer is we're open to any market, but we had to do some work in Bham as we had a few non-performing notes that we couldn't mod which eventually left us with foreclosed properties that needed to be rehabbed. Through those we developed a team (granted our GC member changed a few times) and Bham evolved into our primary market. I've invested a few times in Phx but never spent the time to develop a pipeline.
- Member since 2026 · 10 posts · 7 votes3mo
@Ken M. That's a valid point, thanks for the advice I will have to consider that.
- Member since 2026 · 10 posts · 7 votes3mo
@Bryan Hartlen, got it, and yes I was well aware of the property type in those areas, I will have to underwrite everything very conservatively. This advice is really good and appreciated. I am learning through this, and I am partially relying on my PM and Realtor to give me better data on the streets and Zipcodes for Birmingham.
- Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes3mo
Quote from @Fernando Moreno:
@Ken M. That's a valid point, thanks for the advice I will have to consider that.
This might save you a few thousand dollars and some grief. It's out of state realities. It's a recent Bigger Pockets investor experience.
https://www.biggerpockets.com/forums/62/topics/1292239-our-e...
- 3moRobert EllisBusiness MemberDeveloper · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
Quote from @Fernando Moreno:
HI everyone, I am a new investor and new to the community and just like many of you I have decided to take the leap into Financial Freedom. I currently live in Tucson, Arizona and have been looking to invest out of state. I look forward to connect with you all and be of help the best I can.
On another note, has anyone been actively doing BRRRR's in Birminham? I would love your input and guidance into it. I have been listening to the podcasts about it and reading BRRRR by Divid Greene. I have been actively trying to learn about this method specially because I could start with little to no money out of pocket
Fernando Moreno
520-409-2923
The sentence that stood out to me was "I could start with little to no money out of pocket."
I used to think the hard part was finding the property. It wasn't. The hard part was making the refinance work the way I modeled it.
I looked at a deal where the purchase and rehab numbers seemed great on paper. The project went fine, the property rented, but the appraisal came in lower than expected. Suddenly there was a lot more cash left in the deal than I planned for.
The property wasn't the problem. The refinance was.
What's making Birmingham attractive to you specifically—cash flow, entry price, or the possibility of pulling most of your capital back out?
Section 8 Launch52 Reviews- Member since 2026 · 10 posts · 7 votes3mo
@Robert Ellis yes! It is the entry point and cashflow, but the more I keep learning about BRRRR and understanding what needs to be done in order to find a deal that can still cashflow after the refinance I am beginning to think that not all of Birmingham has the potential for it. I am being conservative whenever I am analyzing my numbers. But to answer your question Robert, I have been trying to build a team to work with utilizing this method of BRRRR in Birmingham and I am still working through it
- 3moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 931 votes
Quote from @Fernando Moreno:
HI everyone, I am a new investor and new to the community and just like many of you I have decided to take the leap into Financial Freedom. I currently live in Tucson, Arizona and have been looking to invest out of state. I look forward to connect with you all and be of help the best I can.
On another note, has anyone been actively doing BRRRR's in Birminham? I would love your input and guidance into it. I have been listening to the podcasts about it and reading BRRRR by Divid Greene. I have been actively trying to learn about this method specially because I could start with little to no money out of pocket
Fernando Moreno
520-409-2923
You’re on the right track studying BRRRR before jumping in, because the strategy really only works when the rehab budget, rents, and refinance numbers are dialed in conservatively. Birmingham can work for BRRRR, but like a lot of Southern markets, the execution depends heavily on your contractor reliability and how tight your ARV estimates are. That’s why a lot of newer investors also compare it to Midwest markets, where you still see off-market and under-valued properties, but often with more stable rent comps and a deeper pool of lenders who understand BRRRR refinances. The biggest factor isn’t just the deal, it’s having a strong boots-on-the-ground team (PM, contractor, lender, agent) that can execute without surprises. If you line that up first, BRRRR becomes a lot more repeatable instead of risky. - 3moNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
to echo @Ken M.
unless you already have a strong network in Birmingham, or anywhere, if you buy a random property you find, you're likely just going to lose money and fail.
and, BRRRR is not a way to start with no money out of pocket; it's a way to minimize your money out of pocket when you're done. to start, you may need lots of money.
hope this helps, and if you have any more specific questions i'd be happy to dialogue further.
- Member since 2026 · 10 posts · 7 votes3mo
@Nicholas L. Thanks for the advice!
- 3moPatrick O'SullivanBusiness MemberProperty Manager · Phoenix, AZ · Member since 2024 · 534 posts · 203 votes
Welcome to BP, Fernando!
One thing I'd focus on before buying is building a strong local team in Birmingham, including an agent, a contractor, a property manager, and a lender. With BRRRR, the refinance is often the hardest part, so make sure your numbers still work if the appraisal comes in lower than expected.
get MULTIfamily Property Management4.7220 Reviews- Member since 2026 · 10 posts · 7 votes3mo
@Patrick O'Sullivan got you! This advice is greatly appreciated. I am making sure of building my team first before I buy something.
- 3moSamuel CoronadoPro MemberInvestor · Huntsville, AL · Member since 2016 · 335 posts · 181 votes
The best place to invest is your own backyard. Birmingham is the least friendly rental city in all of Alabama. It has the wrong politicians if you know what I mean.
- 3moJames WachobBusiness MemberReal Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 890 votes
Hello @Fernando Moreno! Welcome to the community! It sounds like you're taking the right approach by educating yourself before jumping into your first deal. The BRRRR strategy can be a great way to scale, but I've found it's most successful when you have a strong local team and buy with conservative numbers.
Birmingham has definitely been a market many investors have used for BRRRRs, but I'd encourage you to focus less on the market itself and more on building relationships with an investor-friendly agent, lender, contractor, and property manager. Those relationships will often determine whether a BRRRR is successful.
I'm a real estate agent based in Memphis and work with out-of-state investors building rental portfolios. Many investors who are considering Birmingham also evaluate Memphis because it offers strong cash-flow opportunities and can be a solid market for BRRRR projects when the numbers make sense. The key is buying below market value and having a reliable team to execute the rehab and refinance.
Best of luck as you get started! Keep learning, keep analyzing deals, and don't be afraid to ask questions. If you ever want to compare Birmingham with Memphis or learn more about investing here, I'd be happy to connect and help however I can.- Member since 2026 · 10 posts · 7 votes3mo
@James Wachob I appreciate it you! I have been learning that Real Estate is a team sport and in the process I've met great people. I appreciate the advice and when I'm ready I will seek you about looking into Memphis
- 3moAlfath AhmedBusiness MemberReal Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
Quote from @Fernando Moreno:
HI everyone, I am a new investor and new to the community and just like many of you I have decided to take the leap into Financial Freedom. I currently live in Tucson, Arizona and have been looking to invest out of state. I look forward to connect with you all and be of help the best I can.
On another note, has anyone been actively doing BRRRR's in Birminham? I would love your input and guidance into it. I have been listening to the podcasts about it and reading BRRRR by Divid Greene. I have been actively trying to learn about this method specially because I could start with little to no money out of pocket
Fernando Moreno
520-409-2923
I know a lot of investors that are doing brrrrr deals in Birmingaham. I work with a lot of those investors because they parallelly invest in Columbus as well. I own 30 units here in Columbus and attained them through house-hacking and doing the brrrr method.
I read brrrr by david greene and the robert kiyosaki saga as well. Those shaped my way of thinking 4 years ago and I started working with OOS investors and helping them buy investment properties in my market.
ReafCo | Ahmed Group 536 Reviews- Member since 2026 · 10 posts · 7 votes3mo
@Alfath Ahmed the advice you've given me and the encouragement is greatly appreciated. I will keep building my knowledge and capital to get that first win
- Real Estate Broker · Member since 2024 · 131 posts · 61 votes3w
@Fernando Moreno OOS BRRRR in Birmingham is doable, but "little to no money out of pocket" is the trap. Capital recycling only works if ARV comps are street-real and rehab doesn't blow. On deals we run, we typically leave under $10k in when the numbers are honest. Eastlake / 35206 / parts of 35208 are mostly Class C/D; rent-to-price looks good until you bake in vacancy, turns, and systems. Lock GC + PM before you buy. What's your all-in cash ceiling if the refi leaves 20–30% stuck?
- 3wBrad SeidBusiness MemberLender · Licensed in 28 States · Member since 2026 · 150 posts · 42 votes
@Fernando Moreno Welcome to the community, Fernando! BRRRR can be a great strategy, but having the right financing lined up is key, especially when you're trying to minimize cash out of pocket. If you're exploring Birmingham deals, feel free to reach out. I'd be happy to discuss lending options that may fit your strategy.
West Capital Lending5125 Reviews - 18hDiana KhanPro MemberAttorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 456 posts · 172 votes
Quote from @Fernando Moreno:
HI everyone, I am a new investor and new to the community and just like many of you I have decided to take the leap into Financial Freedom. I currently live in Tucson, Arizona and have been looking to invest out of state. I look forward to connect with you all and be of help the best I can.
On another note, has anyone been actively doing BRRRR's in Birminham? I would love your input and guidance into it. I have been listening to the podcasts about it and reading BRRRR by Divid Greene. I have been actively trying to learn about this method specially because I could start with little to no money out of pocket
Fernando Moreno
@Fernando Moreno, I saw your later comments about building your team before buying, and I think that makes a lot of sense. Since you’ll be investing from Arizona, I’d add one more thing to your checklist: make sure the paperwork gets just as much attention as the rehab and numbers. When you can’t easily drive over to the property yourself, I’d want to be very comfortable with the contract, title, ownership history, any existing leases or occupants, and exactly what I’m agreeing to before closing.
I’ve worked with investors where the numbers looked good, but something on the legal side changed the picture once we dug deeper. Sometimes it was a title issue, something in the contract, or a tenant situation that wasn’t as simple as expected. Those things can be challenging enough locally, so I’d be even more careful when buying from another state.
I like that you’ve been taking the feedback here seriously instead of rushing into the first deal, @Fernando Moreno. I’m a real estate attorney and investor in Maryland, so I tend to see the parts of a transaction that aren’t always obvious from the spreadsheet. Happy to stay connected and follow along as you work toward your first one.
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